Microsoft (NASDAQ:MSFT) Stock Rating Upgraded by Raymond James Financial

Microsoft (NASDAQ:MSFT) was upgraded by analysts at Raymond James Financial from a “strong sell” rating to a “moderate buy” rating in a research note issued to investors on Tuesday, Zacks reports.

A number of other research analysts have also weighed in on MSFT. Piper Sandler reissued an “overweight” rating on shares of Microsoft in a report on Tuesday, October 20th. Wolfe Research downgraded Microsoft from an “outperform” rating to a “hold” rating in a report on Wednesday, September 23rd. Benchmark reiterated a “buy” rating on shares of Microsoft in a research report on Friday, July 24th. Cantor Fitzgerald increased their price target on shares of Microsoft from $522.00 to $608.00 and gave the stock an “overweight” rating in a report on Monday, September 21st. Finally, TD Cowen raised their price target on shares of Microsoft from $540.00 to $625.00 and gave the stock a “buy” rating in a research report on Thursday, October 15th. Forty-five research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, Microsoft presently has an average rating of “Moderate Buy” and an average target price of $599.98.

Microsoft Trading Down 0.1%

NASDAQ:MSFT opened at $531.01 on Tuesday. The company has a market capitalization of $3.94 trillion, a P/E ratio of 29.57, a PEG ratio of 1.68 and a beta of 1.10. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07. Microsoft has a 12 month low of $349.20 and a 12 month high of $551.15. The firm has a fifty day simple moving average of $511.18 and a 200-day simple moving average of $437.96.

Microsoft (NASDAQ:MSFT) last issued its quarterly earnings results on Wednesday, October 28th. The software giant reported $4.89 EPS for the quarter, topping analysts’ consensus estimates of $4.71 by $0.18. Microsoft had a return on equity of 31.98% and a net margin of 40.31%. The company had revenue of $92.28 billion during the quarter, compared to analysts’ expectations of $90.62 billion. During the same quarter in the previous year, the firm posted $4.13 EPS. The firm’s revenue was up 18.8% compared to the same quarter last year. On average, equities research analysts anticipate that Microsoft will post 19.66 earnings per share for the current year.

Insider Activity

In related news, CEO Judson Althoff sold 10,000 shares of the company’s stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total value of $4,878,900.00. Following the completion of the transaction, the chief executive officer owned 100,447 shares of the company’s stock, valued at approximately $49,007,086.83. This represents a 9.05% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Satya Nadella sold 86,525 shares of the stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total value of $43,388,826.50. Following the transaction, the chief executive officer owned 486,763 shares in the company, valued at $244,092,173.98. This trade represents a 15.09% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 150,314 shares of company stock worth $75,404,992. 0.03% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the company. Empirical Financial Services LLC d.b.a. Empirical Wealth Management raised its holdings in Microsoft by 4.0% in the 2nd quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 229,490 shares of the software giant’s stock valued at $85,604,000 after acquiring an additional 8,773 shares in the last quarter. D.B. Root & Company LLC bought a new stake in shares of Microsoft during the 2nd quarter valued at $3,652,000. Dearborn Partners LLC bought a new stake in shares of Microsoft during the 2nd quarter valued at $75,641,000. GTS Securities LLC grew its holdings in shares of Microsoft by 44.6% during the 2nd quarter. GTS Securities LLC now owns 271,597 shares of the software giant’s stock worth $101,311,000 after purchasing an additional 83,734 shares in the last quarter. Finally, Henson Edgewater Management LLC acquired a new stake in shares of Microsoft during the 2nd quarter worth $9,430,000. 71.13% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft exceeded expectations with quarterly revenue of $92.28 billion and earnings of $4.89 per share, compared with consensus estimates of $90.62 billion and $4.71, respectively. Revenue increased 18.8% year over year. Microsoft Beats Q1 Earnings and Revenue Estimates
• Positive Sentiment: Azure revenue rose 48% to approximately $33.2 billion, helping Microsoft Cloud revenue reach $63.9 billion, up 30%. Foundry revenue more than tripled, while commercial arrangements with OpenAI generated about $10 billion during the quarter. Microsoft Azure Revenue Surges 48%
• Positive Sentiment: Microsoft generated $18.6 billion in free cash flow, reinforcing the view that it can fund its AI buildout while still producing cash. Bank of America analyst Tal Liani reiterated a Buy rating and raised his price target to $630, citing accelerating Azure and AI momentum. Bank of America Raises Microsoft Price Target
• Neutral Sentiment: Microsoft is positioning itself as the governance and security layer for enterprise AI agents. OpenAI, Anthropic and Meta’s Muse are reportedly adopting its agent-containment tools, potentially strengthening Microsoft’s ecosystem and future monetization opportunities. Microsoft’s AI Agent Governance Strategy
• Negative Sentiment: Microsoft reduced its 2026 capital-expenditure forecast to $170 billion from $175 billion, citing delays in third-party data-center capacity. While investors view the lower spending as a sign of discipline, it also raises questions about whether infrastructure constraints could limit Azure growth and pressure AI suppliers. Microsoft Cuts Capital Expenditure Forecast
• Negative Sentiment: Microsoft’s voluntary buyout offer covering roughly 60,000 employees has intensified scrutiny of workforce reductions and the costs of reallocating resources toward AI. The move may improve efficiency, but it creates reputational and execution risks. Microsoft Buyout Offers Draw Criticism

About Microsoft

Microsoft Corporation (NASDAQ:MSFT) is a global technology company that develops software, cloud services, devices and digital platforms. Its products and services are used by consumers, businesses, governments and educational institutions worldwide.

The company’s principal offerings include the Windows operating system; Microsoft 365 productivity applications such as Word, Excel, Teams and Outlook; Azure cloud computing and infrastructure services; Dynamics business applications; and enterprise security solutions.